Cape Town - With the rapid decline of global oil supplies, the United States is heading for an economic crash unlike anything since the 1930s. And the collapse of the dollar will affect every nation on earth.
Wearing a T-shirt that read: "Wake up! You are here," with an arrow pointing to a graph of a peak in oil production, Heinberg said world governments were aware of the pending crisis. The United States department of energy had commissioned a report on the probable impacts of "peak oil", the point at which global oil production will no longer meet demand, which was released in February. "The report was compiled mainly by ex-CIA people. The CIA has always kept a close watch on resources. They found that peak oil would provide the US and the world with an 'unprecedented risk and management problem'. "They say if they have 10 years to prepare, the economic and social chaos could be minimised. But if it's less, the US will face a serious problem and the government will have to manage it without public input. For that, read martial law. The report found oil price volatility will increase to unprecedented levels," Heinberg said. The US response is not to cut oil consumption by making major lifestyle changes, and scale back on economic activity, but to use the military to maintain control over oil in the Middle East. "The long-range plan is for the West to control the Middle East by the military so it can control the price of oil." This was formalised as far back as 1979 by former US president Jimmy Carter, in what became known as the Carter Doctrine, which stated that America would use the military to maintain access to the oil reserves in the Middle East. Clearly we need to find substitutes for oil, says Heinberg, but the available energy alternatives are not reassuring. Natural gas extraction will peak a few years after oil, extraction rates for coal will peak in decades, nuclear energy is dogged by unresolved problems of waste disposal and solar and wind energy will have to undergo rapid expansion if they are to replace even a fraction of the energy shortfall from oil. And the enthusiasm about a hydrogen economy comes from politics rather than science, he said. "Our real problem is that we are trapped in a perpetual growth machine. As long as modern societies need economic growth to stave off collapse (given existing debt-and-interest-based national currencies), we will continue to require ever more resources yearly. But the Earth has limited resources. "The energy conundrum is thus intimately tied to the fact that we anticipate perpetual growth within a finite system," Heinberg said. He sketches four main options available in response: "The sooner we choose wisely, the better off we and our descendants will be," Heinberg said.
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